BAE sales soar as global turmoil boosts defence spending
Defense giant BAE Systems is seeing sales soar as global unrest pushes up defense spending
The “heightened global threat environment” is boosting defense giant BAE Systems, boss says.
Chief executive Charles Woodburn said trade was strong as the war in Ukraine continues.
Demand for arms, ammunition and equipment has skyrocketed as Britain, the US and other allies support Ukraine after Russia’s invasion and try to replenish their own supplies.
Fortunes of war: BAE expects revenue to grow 5% for the year from last year’s £23bn, with profit expected to increase to 6%
Rising fears of Chinese aggression in the Asia-Pacific region are also leading to higher spending in the West.
Woodburn also said the Aukus deal between the US, Britain and Australia to supply Australia with nuclear-powered submarines would be “significant”.
BAE expects sales to grow by up to 5 percent for the year from last year’s £23 billion, and profits are expected to rise by up to 6 percent.
The update came as BAE held its annual meeting with shareholders in Farnborough, Hampshire.
Chairman Sir Roger Carr has stepped down to succeed Cressida Hogg. Shares, which are up more than 80 percent since early 2022, fell 2.6 percent, or 26.3 pence, to 993.2 pence.